Brands Missing Out on Sales as Consumers Led Astray Online

Melbourne IT Digital Brand Services (DBS) (ASX: MLB)

Key Findings:

• 44% of consumers shop online a few times a week or month; 6% shop online daily
• 74% are likely to go online to find a better deal than what they found in-store, before buying
• When trying to find the official website of an advertised product or service, 67% of consumers visit a different website than the one they had intended after using a search engine
• 49% prefer to visit websites that remember preferences and display relevant information
• 80% think online brands should better help consumers tell the difference between websites selling genuine goods from websites selling counterfeit or fake goods

A new consumer survey about online shopping, navigation and trust reveals the obstacles brands face in having offline marketing efforts materialize with online sales. Three quarters of consumers are likely to go online after visiting a store to find a better deal before buying, and most start with search engines. Such habits equal a tall order for marketers today, who must get consumers to their website amid online distractions, phishing scams and lingering trust concerns – then offer the best deal and get personal.

Sponsored by Melbourne IT DBS, the online survey of 1,000 U.S. consumers was designed to uncover consumer behavior online and provide insight to businesses as they engage with consumers on the Internet. The research was conducted in response to ICANN’s approval of the application guidelines for its new generic top-level domain (gTLD) program, which will allow organizations to apply for their company and product names as a .brand domain (e.g. Canon has signaled it will apply for .canon).

Search and Navigation – Mobile and Google Effects

As marketers spend millions on cross-platform advertising campaigns, the research highlighted the challenge of capturing customer leads online.

When asked how they usually navigate to the websites of products or companies advertised on TV, radio or in print, very few go direct: 35% of consumers type the advertiser’s brand or product name into a search engine and navigate from there; 26% begin by typing the web address into a search engine. However, when trying to find the official site of a product or service they had seen or heard advertised, 67% of consumers admitted to ending up on a completely different website than the official site they had intended to visit, via a search engine.

“Marketers strive to capture online shoppers from offline marketing efforts, yet with the majority of consumers using a search engine such as Google to find a company’s site, the risk is most users get side-tracked. It is a real concern for the brands that spend millions on TV and radio ads, sponsorship, and direct mail to get those leads to the right website to buy, without losing them along the way,” commented Tim Callan, CMO, Melbourne IT DBS. “No matter how they access the Internet, consumers want to easily find companies online. Companies owning a .brand domain can offer short memorable Web addresses, so that customers and prospects can easily navigate to their favorite brands vs. relying on search engine results, which serve up many competing products or companies.”

Online Security and Fraud

Fraud remains a concern for consumers online. A third of consumers have trouble differentiating between websites selling genuine goods or counterfeit items. Of those who do not shop online regularly (< several times per year), 36% are concerned about the security of their information or money and 19% about buying fake products. Even when banking online, nearly half of consumers rely on website appearance for authenticity, fueling phishing scams that collect sensitive data by masquerading as a trustworthy entity.

“Amid a sea of new domains, our view is a .brand will emerge as a trusted site. Over time, customers can be encouraged to disregard sites without the .brand suffix,” said Callan. “Global brands that are successful in applying for their own .brand can make it the centerpiece of their long-term brand protection strategy. By creating and owning a unique piece of online real estate, brands are able to exert full control over who resides in that space, making cybersquatting moot.”

For more information on the new .brand top level domain program, visit www.melbourneitdbs.com.

Survey Methodology

The polling company, Inc. conducted the nationwide online survey of 1,007 American adults, ages 18-55, in September 2011. The survey instrument contained 17 substantive questions and 9 demographic inquiries with ±3.1% margin of error. Press interested in a full report of the survey findings should contact Liza Colburn at [phone].

About Melbourne IT Digital Brand Services

Melbourne IT Digital Brand Services (Melbourne IT DBS) helps organizations manage, protect and optimize their brands online to maximize the value of their online assets. The company helps clients minimize risk and make smarter decisions in managing their online presence. Headquartered in Mountain View, CA, Melbourne IT DBS has 15 offices in 10 countries and 3,500+ clients, including some of the world’s top brands. Melbourne IT DBS is a division of the listed Melbourne IT Group (ASX: MLB).